Delisting Candidates under my microscope
In 2010, SEBI had come out with norms
1. government firms should have a minimum public shareholding of 10%
2. For private companies it is 25%.
These guidelines were to be complied within three years.
The private companies have to meet norms by June 2013 & for public sector undertakings the deadline is August 2013.
We shall look at some of Pvt Companies.
Which Option will Pvt Sector promoter choose
a) Go for volunteer Delisting.
b) Dilute his stake to 74%.
Not All Promoters are going delisting way as it's not wise choice for them.
So take look at this section and make careful decision.
Especially 3M INDIA, Oracle Financial services are riskier bets...
1. government firms should have a minimum public shareholding of 10%
2. For private companies it is 25%.
These guidelines were to be complied within three years.
The private companies have to meet norms by June 2013 & for public sector undertakings the deadline is August 2013.
We shall look at some of Pvt Companies.
Which Option will Pvt Sector promoter choose
a) Go for volunteer Delisting.
b) Dilute his stake to 74%.
Not All Promoters are going delisting way as it's not wise choice for them.
So take look at this section and make careful decision.
Especially 3M INDIA, Oracle Financial services are riskier bets...
Hi,
ReplyDeleteThanks for the post! One question- is this the exhaustive list for Promoter Holding > 75% for pvt listed companies?
hi No I have not considered any co's with market cap less than 100 crores.
ReplyDeleteAlso PSU companies are not considered as we need they will under go dilution to meet fiscal deficit.
Especially 3M INDIA, Oracle Financial services are riskier bets...
ReplyDeleteCan I get a complete note/statement here?
Not sure why you consider Oracle as a risky investment?
Thanks.
ORACLE WILL SHED IT'S 6% STAKE.
ReplyDeleteREASON CMP IS FAR ABOVE THE EARNINGS POTENTIAL WHICH COMPANY CAN GENERATE OVER 10YEARS BASED ON LAST 5YRS CAGR GWTH RATE IN REVENUES AND WHEN WE DISCOUNT IT BY 9% TO GET THE PRESENT VALUE FOR RETURNS OVER PERIOD OF 1O YEARS.
ALSO SEE THE DILUTIVE BOOK VALUE PER SHARE LEFT FOR PROMOTERS.
SO I SEE EQUITY DILUTION FOR BOTH 3M N ORACLE
Can u elaborate this with figures? Why do u think CMP is far above the THE EARNINGS POTENTIAL WHICH COMPANY CAN GENERATE OVER 10YEARS BASED ON LAST 5YRS CAGR GWTH RATE IN REVENUES?
Deletewhat is your view on sah petroleum ltd delisting chances ?
ReplyDelete